ANCOM

ANRC imposed the obligation of tariff cost-orientation by means of the LRIC models on S.C. Romtelecom S.A, S.C. Mobifon S.A. and S.C. Orange Romania S.A. Thus, each of these companies have the obligation to elaborate a top-down LRIC model, with a view to enabling the cost-orientation of the tariffs charged by the respective companies for the interconnection services, as ANRC designated the three operators as having significant power on the market of such services. In the process of tariff calculation for these services, the models will use data from the accounting statements of the three operators and will be based on information regarding the recent performances of the operators, thus offering the possibility to eliminate the costs incurred from structural and operational inefficiency, as well as the possibility of making a long term forecast for these costs.

As well, in order to identify the tariffs for which the three operators have the cost-orientation obligation, ANRC will conduct two bottom-up LRIC models (one for the fixed network and one for the mobile network). The input data for these models will consider the practices and the performances of the effective performances of the operators on the international markets. The costing models elaborated by the operators must be flexible enough to allow the comparison of the data resulted upon the enforcement of the two models. The models shall undergo a reconciliation process meant to ensure the accuracy of determining all the company’s costs and the transparency of the manner of establishing the interconnection tariffs.

The regulations also include, among other provisions, a description and the detailing level of the calculation model imposed on the operators, a definition of the services analyses within the model and the principles of determining the current costs of the fixed assets.